Correlation Between Shutterstock and ANGI Homeservices
Can any of the company-specific risk be diversified away by investing in both Shutterstock and ANGI Homeservices at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shutterstock and ANGI Homeservices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shutterstock and ANGI Homeservices, you can compare the effects of market volatilities on Shutterstock and ANGI Homeservices and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shutterstock with a short position of ANGI Homeservices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shutterstock and ANGI Homeservices.
Diversification Opportunities for Shutterstock and ANGI Homeservices
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shutterstock and ANGI is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shutterstock and ANGI Homeservices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGI Homeservices and Shutterstock is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shutterstock are associated (or correlated) with ANGI Homeservices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGI Homeservices has no effect on the direction of Shutterstock i.e., Shutterstock and ANGI Homeservices go up and down completely randomly.
Pair Corralation between Shutterstock and ANGI Homeservices
Given the investment horizon of 90 days Shutterstock is expected to generate 15.04 times less return on investment than ANGI Homeservices. In addition to that, Shutterstock is 1.64 times more volatile than ANGI Homeservices. It trades about 0.01 of its total potential returns per unit of risk. ANGI Homeservices is currently generating about 0.16 per unit of volatility. If you would invest 165.00 in ANGI Homeservices on November 5, 2024 and sell it today you would earn a total of 15.00 from holding ANGI Homeservices or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shutterstock vs. ANGI Homeservices
Performance |
| Timeline |
| Shutterstock |
| ANGI Homeservices |
Shutterstock and ANGI Homeservices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shutterstock and ANGI Homeservices
The main advantage of trading using opposite Shutterstock and ANGI Homeservices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shutterstock position performs unexpectedly, ANGI Homeservices can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ANGI Homeservices will offset losses from the drop in ANGI Homeservices' long position.| Shutterstock vs. Yelp Inc | Shutterstock vs. Match Group | Shutterstock vs. Snap Inc | Shutterstock vs. Onfolio Holdings |
| ANGI Homeservices vs. Match Group | ANGI Homeservices vs. Outbrain | ANGI Homeservices vs. MediaAlpha | ANGI Homeservices vs. YY Inc Class |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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